"Does Our Dog Not Bite?" Liability Insurance, 'Mandatory' in Spain

Starting September... Mandatory Enrollment Regardless of Dog Breed
Up to 10,000 Euro Fine for Non-Enrollment
Only Dangerous Dogs Mandatorily Insured Domestically
Exists Only as a Special Clause in Pet Insurance

As the number of pet-owning households increases, controversies surrounding 'pet insurance' continue. Although the government has announced plans to promote pet insurance, disagreements persist over the standardization of medical treatment items aimed at reducing the cost disparities between animal hospitals. Meanwhile, Spain has attracted attention by implementing a law requiring dog owners to compulsorily subscribe to liability insurance regardless of the breed.

A major pet-owning country but a transit point for smuggling... Difficult to manage until recently

On the 29th, researcher Jang Yun-mi from the Korea Insurance Research Institute released a report containing these details. According to the report, Spain is one of the major pet-owning countries in Europe, with registered pets numbering 13 million. In terms of pet market size, it ranks after the UK, Germany, and Italy, and the number of pets exceeds that of South Korea by more than 60%. According to a survey by the Ministry of Agriculture, Food and Rural Affairs last year, the number of pets in South Korea was 7.99 million.

However, as of 2020, only about 27.7% of dogs received by animal protection centers in Spain were identifiable by microchip. For cats, the figure was only 4.3%. This means that the majority of pets are outside the management and control of the Spanish government.

The pet insurance subscription rate was also low, at only 3% relative to the number of pets, which is significantly lower compared to the UK’s 28%. Following the COVID-19 pandemic, as the number of pets increased, issues related to their public health and safety emerged.

In particular, Spain has been identified as a major transit point for illegal animal trade. Due to its geopolitical location and socio-cultural ties, it serves as a primary entry and transit point for illegally captured animals from Latin America and Africa being trafficked to France, Belgium, and Eastern Europe. The number of protected animals trafficked into Spain increased by 55% compared to the previous year. This has led to ongoing calls for legal measures in Spain and the European Union (EU) to prevent illegal animal trade and protect animals.

Mandatory liability insurance... Fines up to 10,000 euros

After years of raising these issues, institutional measures have finally been put into full operation. Last month, Spain enacted the 'Law on the Protection of Animal Rights and Welfare.' Previously, regulations existed at the regional level, but now a nationwide regulatory framework has been established.

Accordingly, pet owners must register their pets and complete mandatory education related to pet ownership. They must also comply with certain obligations, such as not leaving pets unattended indoors for extended periods.

Most importantly, all dog owners are required to subscribe to liability insurance covering third-party damages for the entire lifespan of their dogs, regardless of breed, and maintain the insurance in a valid state. The scope of liability insurance coverage must sufficiently cover physical and material damages caused by the dog to third parties or other animals, as well as civil liabilities of the person responsible for the dog.

The insurance premium is generally around 25 to 30 euros per year (approximately 35,900 to 43,100 KRW). For dangerous dog breeds, it is set at about 50 euros. If veterinary medical treatments or telephone consultation services are included, the premium may increase. Failure to subscribe to insurance can result in fines ranging from 500 to 10,000 euros. According to the animal abuse prevention law enacted in March, if a pet dies due to abuse or other reasons, penalties of up to three years in prison may be imposed.

There are calls for South Korea to eventually move in the same direction. The pet insurance subscription rate in South Korea was about 1.1% as of last year, which itself was a 22% increase from the previous year. Liability insurance, which has become mandatory in Spain, remains an optional rider in South Korea. The only breeds required to subscribe are dangerous dog breeds. Under the Animal Protection Act, only the Dosa, American Pit Bull Terrier, American Staffordshire Terrier, Staffordshire Bull Terrier, Rottweiler, and their mixes are classified as dangerous breeds.